Dubai:Gulf Finance House (GFH) on Sunday posted a solid set of fourth quarter and 2016 results, with net profit jumping to $233.05 million in 2016, a near 20-fold increase.

Revenues also jumped $578.96 million last year compared to $87.99 million in 2015. The increase was due to major recoveries achieved from litigation awards.

Consolidated net profit for the fourth quarter to December increased to $223.34 million, after provisions of $196.1 million, versus a loss of $5.9 million in the fourth quarter of 2015, the bank said in an emailed statement.

“Our results were supported by the significant recoveries that saw $460 million of assets restored back to the Group, a major benefit for shareholders and one that will allow us to deliver stronger results for the years to come,” Dr. Ahmad Al Mutawa, Chairman of GFH said in a statement.

The group has set aside $221 million in reserves of non-cash in nature. The board has also recommended the distribution of 20 per cent profits to shareholders in the form of 10 per cent cash dividends and 10 per cent bonus shares, subject to approvals.

The board has recommended a new strategy for 2017-19, which focuses on accelerating growth by way of acquiring financial institutions, infrastructure investments and strategic assets.

“We have also set the group foundations for the future by further strengthening our Investment Banking, Real Estate and Commercial Banking activities, and have taken sufficient provisions to make the Group’s balance sheet more efficient for future value extraction,” Hisham Al Rayes, CEO of GFH said.

GFH will aim to double the size of the balance sheet over the next three years.

“We look forward to building on the momentum of our turnaround success story and start 2017 in a stronger financial position that will allow us to accelerate the implementation of our new strategy and plans for growth,” Al Rayes added.

GFH shares closed at Dh2.79, after registering more than 400 per cent increase in the past one year.